Even though there was a slight decline in the prices of crude oil on Friday morning, there was a slight increase in the prices of crude oil till the market closed on Thursday. John Kilduff, partner at Again Capital, said in a Reuters report that we are seeing a little short-covering here. Now the focus is on how much supply will come into the market, not on how much supply will be reduced. Brent futures are trading flat at $ 71.74 per barrel on Friday. Whereas American West Texas Intermediate (WTI) crude was seen trading at $68.60. During the session, both benchmarks hit their lowest levels since the US-Israeli war on Iran began in late February. Brent was down 0.60 percent for the entire week, while WTI appeared to be down 0.78 percent. The special thing is that in 40 days there has been a decline of 28 percent in the prices of crude oil. On the other hand, there has been no change in the prices of petrol and diesel in India.
Talks between US and Iran positive
Mediator Qatar said the US and Iran have made progress in talks towards a permanent peace deal to end the four-month war that has blocked key oil shipping through the Strait of Hormuz. Qatar’s Foreign Ministry spokesperson said in a post on So far there have been no indications that both sides have taken any concrete steps towards permanent peace. The Qatar ministry further said that the next meeting between Iran and US negotiators will take place after the funeral of Iran’s late supreme leader Ayatollah Ali Khamenei on July 9.
Demand did not pick up properly
SEB Chief Commodity Analyst Bjarne Schildrop said in a Reuters report that the supply of oil from the Strait of Hormuz continues, and at the same time we are also extracting oil from our strategic reserves. And apart from this, the purchase of crude oil from China and the demand for oil has not yet picked up properly. This could be a kind of dynamic picture of a rapid fall in prices and then a rebound at some point. At least five supertankers carrying a total of 10 million barrels of Saudi oil loaded from Ras Tanura have exited the Strait of Hormuz after Saudi Aramco adopted spot pricing to boost sales in Asia, according to trade sources and shipping data. Phil Flynn, senior analyst at Price Futures Group, said it appears that refineries can get as much oil as they want, but it is difficult to get it out of the refineries. The market feels that the situation in Iran is getting better, although there will be ups and downs, but the situation is improving.
UBS lowers oil price forecast
The Energy Information Administration said on Wednesday that US crude oil stocks fell to their lowest level since 2018 last week as demand at domestic refineries increased, while gasoline stocks also decreased. UBS has cut its estimates for Brent crude. The reason for this is the increase in oil shipping through the Strait of Hormuz, from where 20 percent of the world’s oil is transported through tanker ships. The bank has reduced its estimates of the price of Brent crude. It reduced its third quarter forecast by $25 per barrel to $80 and its fourth quarter forecast by $10 per barrel to $80. It also reduced its forecast for 2027 by $10 per barrel to $75.
Nigeria becomes OPEC member
HSBC analysts believe the market will handle oil supplies coming back from the Middle East as stocks gradually replenish and the IEA’s strategic stock releases end in July. HSBC’s report said that as the near-term ‘mini-glut’ ends, the price of Brent could go back to $ 80 per barrel or above. Meanwhile, Nigeria has become the first OPEC member to join the International Energy Agency (IEA) as an associate member. This step further strengthens relations between the global energy watchdog and Africa’s largest oil producing country. On the other hand, the General Staff of Ukraine said on Thursday that the Ukrainian Army attacked the Lukoil-Nizhegorodnefteorgsintez oil refinery located in the Nizhny Novgorod area of Russia.
Petrol prices on 3rd July
Petrol price in Delhi: ₹102.12/litre Petrol price in Kolkata: ₹113.51/litre Petrol price in Mumbai: ₹111.21/litre Petrol price in Chennai: ₹108.01/litre Petrol price in Hyderabad: ₹115.73/litre Petrol price in Bengaluru: ₹110.89/litre
Diesel prices on July 3
Diesel price in Delhi: ₹95.20/litre Diesel price in Kolkata: ₹99.82/litre Diesel price in Mumbai: ₹97.83/litre Diesel price in Chennai: ₹99.66/litre Diesel price in Hyderabad: ₹103.82/litre Diesel price in Bengaluru: ₹98.80/litre
Prices freeze after May 25
There has been no change in the prices of petrol and diesel in India for 40 days. The last increase in the prices of petrol and diesel was seen on May 25. According to experts, the way crude oil prices are falling, it is estimated that the freeze button will remain pressed on the prices of petrol and diesel. The price of petrol and diesel in Delhi is Rs 102.12 and Rs 95.20 per liter respectively.
The price of petrol in Kolkata is Rs 113.51 and the price of diesel is Rs 99.82 per liter. In Mumbai, the prices of petrol and diesel are seen at Rs 111.21 and Rs 97.83 per liter respectively. Whereas in Chennai the price of petrol has come to Rs 107.77 and diesel to Rs 99.55 per liter. However, in the month of May, there was an increase of 7 to 8 percent in fuel prices.
